Overview
The markets were extremely volatile early in the second quarter, largely due to tariff proposals, but also affected by geopolitical conflict and the U.S. budget battle. But with apparent progress across all these fronts, major indices rallied amid resilient economic growth and moderating inflation. Now, investors face a new challenge, in the form of higher equity valuations, even as fiscal strains and renewed tariff uncertainty are cause for concern.
In our view, such an environment requires fresh thinking. In this issue of Aspire, we include perspectives on the market outlook, international opportunities and allocating to cryptocurrency, as well as planning insights on taxes, helping aging loved ones, and investing in private markets through insurance.
The deck has been shuffled for investors, who face relatively high domestic equity valuations, renewed tariff uncertainty and questions about long-term U.S. fiscal health. Attention to asset allocation could be useful, along with openness to diversification opportunities.
Featured Articles
Aspire to... INVEST
The International Moment
After years in the wilderness, are international stocks primed for a more sustained period of outperformance?
The traditional home market bias of U.S. investors has served them well in recent years, with domestic equities often substantially outperforming international peers. That said, no single country has ever (since World War II) been the top-performing market globally in consecutive decades, and such epochs have generally been followed by periods of weaker results. Examples include Japan’s 253% cumulative return in the 1980s, followed by a 26% decline in the 1990s, and U.S.’s 300% gain in the 1990s, followed by a -5% return in the 2000s (worsened by the Global Financial Crisis of 2008).
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Aspire to... INNOVATE
Sizing Up Cryptocurrency
Investors often wrestle with how to fit Bitcoin into portfolios; we share some ideas.
The cryptocurrency universe continues to evolve and grow by leaps and bounds. While once Bitcoin was the only major player on the block(chain), it has been joined by myriad products with various characteristics that are part of the growing category of digital assets. How is the current landscape shaping up, what might be the path forward, and what should investors consider if interested in dipping their toe in the water? We offer some high-level thoughts.
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Aspire to... PLAN
Alert: Major Federal Tax Law Changes
The Trump administration’s tax and spending bill is now law; below, we summarize the most notable tax provisions.
On Friday, July 4, President Donald Trump signed into law a comprehensive tax and spending package, delivering on several major campaign promises and extending key provisions from the 2017 tax legislation. After intensive negotiations, both the House and Senate passed the bill ahead of the administration’s self-imposed Independence Day deadline. The legislation introduces significant changes for individuals, families and businesses.
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Aspire to... LEARN
Safeguarding and Supporting Loved Ones in Mental Decline
Proactive steps can ease the burden of a difficult process.
Declining mental capacity among aging loved ones can be an overwhelming challenge for family members, posing myriad emotional, medical, planning and caregiving issues. Those suffering from decline may be unaware of their condition and thus resistant to assistance, even as dementia makes it hard to make even routine financial and health care decisions. Where possible, we believe it is important to take proactive steps to protect them from a health care and financial perspective, whether from poor decision-making or from those who may seek to take advantage of them. Here are a few high-level ideas to consider.
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Aspire to... OPTIMIZE
Private Markets Exposure Through Life Insurance
We believe specialized insurance products can be powerful tools for tax-efficient investors.
Private markets have gained significant traction among investors seeking attractive return potential with relatively low correlation to traditional public market assets. However, as with public investments, taxes can pose challenges, reducing the returns that fully reflect the economic success of the underlying investments. For taxable investors, asset location plays a critical role in optimizing returns. Specialized insurance products, such as Private Placement Life Insurance (PPLI) and Private Placement Variable Annuities (PPVA), can offer meaningful advantages for qualified investors, making them powerful tools in a tax-efficient investment strategy.
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Our Team
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We approach client partnership in a different way. With a sole focus on wealth management, we take the time to understand your values and vision, so we can tailor solutions aligned to your purpose and investment goals. Each advisor team brings the full depth and breadth of all NB Private Wealth has to offer.
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